U.S. companies set minimum prices to halt discounting

STORY: Manufacturers are increasingly setting minimum prices on their goods to maintain profits and limit price cutting

as online retailers like Amazon and Walmart try to grab sales from each other

For years, manufacturers set the lowest price at which retailers could advertise certain big-ticket items

They wanted to stop shoppers from seeing one price in-store, only to find it online for less somewhere else

But some companies are now setting minimum prices for everyday items

Quote from Jack Gale, Account executive at PriceSpider:

"We're seeing categories adopt (these floors) that never had, like food and beverage."

Source: Reuters source

Colgate-Palmolive has in recent months used minimum price policies on products like toothpaste

The Pro Series toothpaste is advertised for $9.96 on Amazon and consumers have struggled to find it for less elsewhere

Source: Company memo seen by Reuters

Hasbro requires retailers to keep advertised prices above specified levels, except during the holiday shopping season

Source: Ron Alcazar, CEO

And Mr. Tortilla decided to set a minimum as it expanded sales, to keep prices level across online retailers

While the policies are legal in most of the U.S., they are illegal in many countries